Flipkart to Buy 7.8 Percent Stake in Aditya Birla's Fashion Unit for Rs. 1,500 Crores

Both Amazon and Flipkart were in the race to pick a stake in Aditya Birla Fashion and Retail.

By Gadgets 360 Staff With Inputs From Reuters | Updated: 23 October 2020 12:31 IST

Flipkart to Buy 7.8 Percent Stake in Aditya Birla's Fashion Unit for Rs. 1,500 Crores

Earlier reports had said both Amazon and Flipkart were in the race to pick stake in Aditya Birla Fashion

Highlights

Shares of Aditya Birla Fashion and Retail surged to 6.5 percent
Indians are turning to online platforms for all purchases
Aditya Birla said it would use the money to strengthen its balance sheet

Walmart's Flipkart will buy a 7.8 percent stake in Aditya Birla Fashion and Retail Ltd for Rs. 1,500 crores, the fashion retail company said, sending its shares up 6 percent on Friday.

The investment comes at a time when Amazon, billionaire Mukesh Ambani-led Reliance, and Flipkart are in a race to gain market share in India's fast-growing online market for food and groceries.

"Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class... Rapid growth of technology infrastructure will further accelerate this process," Aditya Birla Group Chairman Kumar Mangalam Birla said.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

With the COVID-19 pandemic keeping most people indoors, Indians are turning to online platforms for all purchases from bread to phones to clothes.

Earlier reports had said both Amazon and Flipkart were in the race to pick a stake in Aditya Birla Fashion and Retail, that owns and operates the Pantaloons retail chain and owns rights to sell Forever 21 merchandise in India.

Aditya Birla said it would use the money to strengthen its balance sheet as it scales up its businesses.

Amazon, Others Rake in Rs. 35,400 Crores During Online Sales: Report

Shares of Aditya Birla Fashion and Retail surged as much as 6.5 percent to Rs. 163.45, their highest since March 30.

Flipkart kicked off its Dussehra Specials sale yesterday, October 22. Slated to go on till October 28, the sale offers great deals on smartphones with no-cost EMI options, exchange discounts, and complete mobile protection. Phones like Realme C3, iPhone SE (2020), iPhone 11 Pro, and Redmi 8A Dual are listed with price cuts.

© Thomson Reuters 2020

Are iPhone 12 mini, HomePod mini the Perfect Apple Devices for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.